Silver yesterday concluded the trading session with an increase of 0.45%, reaching Rs 147728, as indications of a softening U.S. labor market bolstered anticipations of forthcoming Federal Reserve rate reductions. Private data indicated that the U.S. experienced job losses of 153,000 in October, marking the largest decline for that month in 22 years, primarily attributed to cost-cutting measures and AI-driven restructuring. This development has intensified market speculation regarding a 25 basis points rate cut in December, with the probability increasing to 70% from a previous 62%.
Furthermore, the extended U.S. government shutdown, which has postponed critical economic data, alongside heightened risk aversion in global equities—especially within the U.S. technology sector—has enhanced silver’s attractiveness as a safe-haven asset. In the interim, the alleviation of liquidity constraints within London’s silver market bolstered sentiment, as substantial inflows from the U.S. and China replenished supplies and diminished the recent premium over Comex futures.
By the end of September, London vaults contained 24,581 tons of silver, with a valuation of $36.5 billion, as reported by the LBMA. Investment demand exhibited resilience, as global silver ETP holdings approached 1.13 billion ounces by mid-2025, nearing the peak observed in 2021, while retail demand in India experienced a year-on-year increase of 7%. Nonetheless, the Silver Institute has forecasted that the global supply deficit will decrease by 21% to 117.6 million ounces this year, influenced by a 1% decline in demand alongside a 2% rise in supply.
From a technical perspective, the market is experiencing short covering, evidenced by a decline in open interest of -3.83% to 18,927, alongside a price increase of Rs 659. Silver exhibits support at Rs 146765; a decline beneath this level may lead to a test of Rs 145800. Conversely, resistance is identified at Rs 149045, with a breakthrough potentially propelling prices toward Rs 150360.